The Justice Department filed agreements on Oct. 21 to dismiss two appeals over a 2025 rule that would have let the Education Department disqualify some employers from the Public Service Loan Forgiveness program. The rule drew legal challenges from public-interest organizations and local governments.

Federal judges had ruled against the government in June, finding the eligibility change unlawful. The administration’s appeal withdrawals leave those rulings in place in the two cases covered by the agreements. California and Oregon attorneys general, whose states were involved in the litigation, separately announced the dismissals.

This is a change in the legal fight over which employers qualify—not a new blanket student-debt cancellation. Borrowers still must meet the program’s existing requirements, and the reports do not establish a new application deadline or automatic discharge.

Sources: [Associated Press](apnews.com source ↗); [California Department of Justice](oag.ca.gov source ↗); [Oregon Department of Justice](doj.state.or.us source ↗).